Internet Advertising

1
Internet Advertising

• Todays info
• may be
• different
• TOMORROW . . .
• Thats the Internet!!

2
Internet Purchases

• What was the last purchase you made using the
  Internet?
• What percentage of your purchases are made via
  the Internet?
• What products do you purchase over the Internet?
• What do you think is the future for Internet
  dot.com firms?
• What obstacles do dot.com firms face?

Discussion Slide
3
Some Internet Facts

• 160 million Americans have access to the
  Internet.
• More than 4 million Web sites.
• 200 million e-mail addresses.
• 7 trillion e-mails are sent each year.
• Nearly 50 of U.S. population communicates via
  e-mail.
• The average emailer receives 31 emails a day.

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More factoids

• 21 of Internet users are preteens and teens, 35
  are college age and 35 are of Generation X.
• 25 of all B2B purchases are placed via Internet.
• B-to-B e-commerce in the U.S. totals 1.3
  trillion.

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Internet differs from traditional ad media

• Not only is it a communication channel, but also
  a transaction and distribution channel.
• Consumers get information and make purchases and
  payments all through the Internet

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Pros of Internet Advertising

• Truly Interactive Medium
• Enormous Audience
• Immediate Response
• Selective Targeting
• Affluent Market
• Provides In-depth Information

7
Cons of Internet Advertising

• Medium is Untested
• Not Truly a Mass Medium
• Targeting Costs
• Slow Downloads
• Security and Privacy Concerns
• Lack of Control

8
What drives People to a New Site?

• Internet content search (38)
• Word-of-mouth (30)
• Internet banner (20)
• Television ad (7)
• Print ad (5)

Source Don Jeffrey, Survey Details Consumer
Shopping Trends on the Net, Billboard, (May 29,
1999), Vol. 111, No. 22, p. 47.
9
Why Dot.Com Print Ads Fail to Grab and Holder
Attention
Research Study by Roper Starch Worldwide
(November 13, 2000 Http//www.roper.com/news/cont
ent/news221.htm.

• Lack visual power.
• Ambiguous illustrations that require too much
  time and effort to understand.
• Often is not legible.
• Contains no optimum flow.
• Tends to ignore the readers question, whats in
  it for me?

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Problematic issues SPAM

• AOL reports that 70 of email it receives is now
  junk mail thats double what it was at the
  beginning of the year
• Cost to US business - 9 billion

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More Problematic issues

• Pop-ups irritating
• Search engines allow advertisers to pay for a
  place Sponsored Links, but users dont always
  know.

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B-to-B Techniques to Boost Web Site Awareness

• Putting the Web address on printed materials and
  promotional items. (91)
• Advertising in trade journals. (74)
• Registering the Web site with search engines for
  key words. (72)
• Buying banners on other sites. (25)

13
This Buzzsaw.com advertisement was placed in
trade magazines for the construction industry.
The company promises to help business evolve
and survive as the industry undergoes rapid
change.
Http//www.buzzsaw.com
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Banner ads

• Studies show that 50 of banner ads actually are
  viewed by surfers
• For every 100 surfers exposed to an ad, 11
  remember seeing the ad and can mention the brand
  name on the ad without any aid 24 hours later.

15
MCDONALD'S SHIFTING ADS AWAY FROM TV TO
DIGITAL Marketing Chief Cites Increasing Emphasis
on Internet April 10, 2003 By Claire Atkinson
NEW ORLEANS (AdAge.com) -- McDonald Corp.'s
senior vice president of U.S. marketing, Bill
Lamar Jr., drove another nail in the coffin of
the 30-second commercial today when he said the
fast-food giant would be doing less TV and
shifting more of its advertising into digital
media. Not TV drivenSpeaking at the 85th
annual American Association of Advertising
Agencies management conference here, Mr. Lamar
said "The days of spending hundreds of millions
of dollars on TV advertising is over. Reaching
consumers is no longer TV driven." "We must
have insight-driven ideas that connect us to
individual consumers at the right time and in a
place where that customer is most receptive to
our message," he said. "For McDonald's that means
less TV advertising is in our future."
Internet emphasisMr. Lamar underscored the
firm's new focus of attention -- digital
marketing -- saying that no other company is
doing more to reach customers on the Internet
than McDonald's. He cited the fast-food
marketer's product-placement deal with online
game The Sims, coupled with its agreement with
Intel to offer wireless Internet access, as
evidence of this change in focus. "While today,
most of what you'll see is TV advertising, if I
stand in front of you six months from now, what
you'll see will be materially different," he
said. . . .
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Interfacing the Internet and the IMC

• Sales support
• Provide information to sales staff about products
  and clients.
• Quality customer prospects.
• Provides information for sales call
• Provides history of client.
• Customer service
• Reduce cost and provide convenience
• FAQs
• E-mail questions
• Access buyers database for product and service
  information.
• Consumer promotions

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Direct Marketing

• Ideal medium for direct marketing
• Interactive marketing
• Viral marketing

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Viral marketing
A marketing approach that spreads like
wildfire and has nothing to do with computer
viruses. The term was coined by venture capital
firm, Draper Fisher Jurvetson, Redwood City, CA
(www.venture-capital.com) after its investment in
Hotmail grew dramatically. Hotmail
automatically puts an advertisement at the end of
everybody's e-mail message suggesting that they
sign up for the free service. In a year and a
half, more than 12 million people became Hotmail
users
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Clues to Poor Web site Design

• Clueless banners.
• Slow loading front page.
• Forcing people to go through numerous screens.
• Too much verbal information.
• Too many technical terms.
• Hard to navigate.

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Tips to Creating Winning Web Sites

• Decide strategic purpose.
• Easy access and quick loading.
• Written content should be precise.
• Content is key
• Graphics should support content
• Make an offer to encourage a response.
• Ask for site evaluation.
• Provide easy to use navigation links on every
  page.
• Use gimmicks to gain attention at the beginning.
• Change Web site on a regular basis.
• Measure results continually.

Source Based on Ray Jutkins, 13 Ideas That
Could Lead to Successful Web Marketing,
Advertising Ages Business Marketing, (June
1999), Vol. 84, No. 6, p. 27.